Free Editable Five Forces Diagram Examples

Porter's five forces, named after Michael E Porter, are nothing but a framework that helps analyze the competition level in an industry. It helps to start a new industry sector or a new venture. People can use Porter’s five forces along with a SWOT analysis to understand where a business or company stands in the marketplace. It is a macro tool that focuses on a particular company’s data analysis.

1. What is The Porter's Five Forces

A Porter’s five forces example is nothing but a way to outmaneuver and analyze the competitors in a market. For industry, it is essential to know how its marketing strategies, services, and products perform.

It suggests that the state of competition in an industry depends on the following five matters.

  • Threat regarding new entrants
  • The bargaining capabilities of suppliers
  • Buyers’ bargaining power
  • Threats regarding services or substitute products
  • Wary regarding existing industry rivalry

Porter's five forces examples are helpful for they reveal the root causes of a business's profitability. They help in effective and strategic decision-making and develop a competitive strategy for the better performance of an industry.

2. The Five Forces Diagram Examples

People use Porter's five forces examples in various industries to identify the threats and opportunities. Ultimately, it helps gain market share and analyze the product portfolio. It is also essential to determine the capital cost.

Below are Porter's five forces examples with necessary inputs that help industry people create their own.

Example 1: Nike Five Forces Analysis

The given Porter's five forces example is about the Nike Five Forces analysis. According to this diagram:

1. The threats of new entrants in the market are pretty low, as the economies of scale that Nike follows is something a new entrant will never be able to follow.

2. The suppliers’ power is also low as there are too many suppliers in the market, and Nike being a large MNC, can easily buy from any of the suppliers in the market.

3. The buyers’ power is medium because Nike is not offering any unique product. However, one should not forget known personalities prefer Nike. As a result, people will also go for Nike as their idols wear them.

4. The threat of substitutes is again pretty low as the demand for sports products increasing since the last century.

Nike Five Forces Analysis Source:EdrawMax Online

Example 2: Five Competitive Forces

This Porter's five forces example is about the five forces analysis. The instance here talks about each of these forces. The EdrawMax template has helped in etching out all of the five forces. So, according to the diagram:

1. The threat of new entrants in the first force explains whether it will be easy for a new force to enter the market or not.

2. The next force includes the bargaining power of the supplier and what amount of power the supplier has in the present market scenario.

3. The next force states the bargaining power of the buyers and the amount of power enjoyed by the consumers.

4. The fourth force is the threat of substitutes. It helps in knowing how easily the consumer will switch to an alternative.

5. The last and final force talks about competitive rivalry in the market. Or rather about how many companies are there to compete for the market share.

Five Competitive Forces Source:EdrawMax Online

Example 3: Porter Five Forces Model

The example here provides an in-depth description of the five forces and those parameters that decide whether the power of these forces is high, low, or medium. For example, the threats of new entrants depend on barriers to entry, brand loyalty, economies of scale, cumulative experience, government policies, and other things.

Porter Five Forces Model Source:EdrawMax Online

Example 4: Five Forces Framework

The example here provides an in-depth analysis of all the forces, with an in-depth analysis of all the parameters. Parameters help in deciding the power of these forces. The example here uses various companies such as Apple and Uber to explain things.

Five Forces Framework Source:EdrawMax Online

Example 5: The Five Forces Model

The given Porter's five forces example is about the supply-side industry economies of scale, differentiation degree, technical obstacles, profit potentiality, laws, and policies. They help to facilitate integration and improve the potentiality of the industry.

Another crucial aspect of this example is that it also shows how people doing the Porter Five Forces analysis can draw a visual image. A marketing presentation will lose its validation with it. EdrawMax ensures that a person's task becomes effortless with their template.

The Five Forces Model Source:EdrawMax Online

Example 6: Porter's Five Forces Starbucks

The given Porter's five forces example is about analyzing the competitive forces that drive an industry. They help attract new investments, help resolve problems cost-effectively by advancing technologies. The differentiated technology can enhance the supplier’s bargaining power.

EdrawMax has various Porter’s five forces diagrams templates like this. The example here provides the content that should be there on each slide. It is pretty beneficial as it will make the marketer's task of drawing the template effortless.

Porter's Five Forces Starbucks

Source:EdrawMax Online

Example 7: Five Environmental Forces

The example here shows how the marketers can draw the slides for the Porter's Five Forces diagram. The shapes that they should use while making the presentation on the PPT. Other things also find their place in this example.

Five Environmental Forces Source:EdrawMax Online

Example 8: Porter's Five Forces PPT

This Porter’s Five Forces example helps to understand the structure of an industry, evaluate competition amongst existing rivals, analyze the attractiveness in terms of profit, and develop a business strategy.

Porter's Five Forces PPT Source:EdrawMax Online

Example 9: Five Forces Analysis Template

The given Porter’s Five Forces example portrays the five competitive forces that are quintessential for an industry. Three examples are there to explain things in a better way. The first company where there has been the application of Porter’s Five forces is Lush. It belongs to cosmetics and self-care. The second is Shrub Club. It belongs to a fictional business belonging to the Vegan Market arena and the fast-food chain industry. Finally, the last example is Patagonia, which belongs to the outdoor or the sports clothing industry.

Five Forces Analysis Template Source:EdrawMax Online

3. Online Porter's Five Forces Maker

One can use Porter’s five forces diagram maker like EdrawMax to make Porter’s five forces example template. They have a massive library of Porter’s five forces template gallery. One can get some inspiration from there and create such templates effortlessly. Users need to follow a few keystrokes to analyze the competition of a business and improve the attractiveness of a market.

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4. Key Takeaways

Porter's five forces examples help to make a competitive advantage and improve the profitability of an industry. It analyses the five factors like buyers, suppliers, attractive products, current competitors, and potential entrants. They help incorporate strategy formulation, build strategy, and analyze customers' competitive environment.

In conclusion, EdrawMax Online is a quick-start diagramming tool, which is easier to make Porter's five forcess and any other visuals. Also, it contains substantial built-in templates that you can use for free, or share your design with others in our Template Community.